All consumers hear is …”it’s a great time to buy”.  However, the ongoing shortage of homes on the market in greater Cincinnati continues to discourage potential buyers who think they must have 20% down to buy a home.  Low down payment mortgages are available if you know where to look.

Mortgage Options:

The VA loan is a no-money-down program available to members of the U.S. military and surviving spouses. It’s guaranteed by the U.S. Department of Veteran Affairs and  VA loans are similar to FHA loans in that the agency guarantees repayment to lenders making loans which means VA mortgage guidelines.  And VA loan qualifications are pretty straightforward.  Before you start the process make sure you have obtained a “Certificate of Eligibility“.  Check out the types of loans available and then contact your lender to initiate the loan application process.
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The USDA mortgage offers the rural housing loan and no money down.  Only certain lenders offer the USDA loans so check the list and follow their guidance on searching for eligible properties.  UDA Loan Calculator

More information on USDA Loans

FHA Mortgages offers 3.5% down and are by far one of the most popular mortgages in use today.  FHA offers a variety of tools and programs to meet the needs of today’s buyers and most sellers are comfortable accepting offers from buyers with FHA financing.

FannieMae Conventional 97% loan.  The program was created to help creditworthy home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment, and a refinance option for Fannie Mae loans.

While no down payment and low down payment programs grab the attention of buyers the addition of mortgage insurance premiums in their monthly payments is a downer.  But for buyers with less than 20% down ( the amount required to skip mortgage insurance premiums) the no and low down payment programs are the only way to securing a mortgage.  Think of it as insurance- the mortgage insurance premium is there to protect lenders in case of foreclosure.  Once the borrower had made paid down the mortgage or the property values have risen to the point where your property value takes you to 80% + equity, you can petition the lender to drop the premium.20 percent to put down and, eventually, private mortgage insurance can get removed.

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